New Brunswick Income Tax
New Brunswick uses a progressive income tax system, meaning different portions of your taxable income are taxed at different rates. Provincial income tax is calculated separately from federal income tax, and the two amounts together determine your overall income tax liability.
New Brunswick's income tax brackets and many provincial tax credit amounts are indexed annually to inflation. As the thresholds increase, taxpayers can earn more before moving into the next tax bracket. The applicable rates and income thresholds for each tax year are shown in the tables below.
New Brunswick residents can also claim a range of provincial non-refundable tax credits, including the Basic Personal Amount and amounts for a spouse or common-law partner, eligible dependants, age, disability, medical expenses, and charitable donations. Lower-income individuals and families may also qualify for the New Brunswick Low-Income Tax Reduction, which can further reduce provincial income tax payable.
New Brunswick income tax is administered through the federal tax system. Residents file a single income tax return with the Canada Revenue Agency, which calculates both federal and provincial income taxes. Employees typically have income tax deducted from each paycheque, with any remaining balance owing or refund determined when they file their annual return.
New Brunswick also levies Harmonized Sales Tax (HST) on most taxable goods and services. HST is separate from personal income tax and combines the federal and provincial sales taxes into a single tax.
New Brunswick Tax Brackets
New Brunswick's provincial income tax rates are applied across four tax brackets. The income thresholds for these brackets are indexed annually to inflation, which means the amount of income you can earn before moving into a higher tax bracket increases each year. The applicable tax rates and thresholds for each tax year are shown in the table below.
New Brunswick Provincial Income Tax Brackets
| 2023 | 2024 | 2025 | 2026 | Rate |
|---|---|---|---|---|
| Up to $47,715 | Up to $49,958 | Up to $51,306 | Up to $52,333 | 9.4% |
| $47,715.01 to $95,431 | $49,958.01 to $99,916 | $51,306.01 to $102,614 | $52,333.01 to $104,666 | 14.0% |
| $95,431.01 to $176,756 | $99,916.01 to $185,064 | $102,614.01 to $190,060 | $104,666.01 to $193,861 | 16.0% |
| Over $176,756 | Over $185,064 | Over $190,060 | Over $193,861 | 19.5% |
New Brunswick 2026 Income Tax Examples
| Annual Salary | Federal Tax | New Brunswick Tax | CPP & EI | Total Tax and Payroll Deductions | After-Tax Income |
|---|---|---|---|---|---|
| $50,000 | $3,985 | $3,079 | $3,582 | $10,646 | $39,354 |
| $100,000 | $13,301 | $9,714 | $5,770 | $28,785 | $71,215 |
| $150,000 | $25,302 | $17,598 | $5,770 | $48,670 | $101,330 |
| $200,000 | $38,876 | $25,773 | $5,770 | $70,419 | $129,581 |
These examples show estimated income tax and payroll deductions for single New Brunswick residents under 65 earning employment income only, with no additional deductions or credits beyond those automatically included in the calculator.
New Brunswick Basic Personal Amount
The New Brunswick Basic Personal Amount is a non-refundable tax credit that reduces the amount of provincial income tax you owe. If your taxable income is below the Basic Personal Amount, you generally will not owe New Brunswick provincial income tax. If your income is higher, the credit reduces the provincial tax calculated on your income.
The Basic Personal Amount is indexed annually to inflation. The applicable amounts for each tax year are shown in the table below.
New Brunswick Personal Tax Credits 2023 - 2026
| 2023 | 2024 | 2025 | 2026 | |
|---|---|---|---|---|
| Basic Personal Amount | $12,458 | $13,044 | $13,396 | $13,664 |
| Maximum Spouse/Common-Law Partner Amount | $9,764 | $10,223 | $10,499 | $10,709 |
New Brunswick Low-Income Tax Reduction
The New Brunswick Low-Income Tax Reduction is a non-refundable tax credit that reduces provincial income tax for lower-income individuals and families. Eligibility and the amount of the reduction depend on individual or family income.
You can claim a basic amount for yourself, with additional amounts available for an eligible spouse or common-law partner and for an eligible dependant. However, the total reduction is subject to a maximum amount.
The credit is income-tested. Once income exceeds the applicable threshold, the available reduction is gradually reduced using a 3% phase-out rate. The income thresholds and maximum credit amounts are indexed annually to inflation, so the applicable values for each tax year are shown in the table below.
New Brunswick Low-Income Tax Reduction
| Tax Year | Basic Reduction | Spouse/Common-Law Partner or Eligible Dependant | Maximum Reduction | Adjusted Family Income Phase-Out Threshold | Phase-Out Rate |
|---|---|---|---|---|---|
| 2024 | $781 | $781 | $1,562 | $21,343 | 3% |
| 2025 | $802 | $802 | $1,604 | $21,920 | 3% |
| 2026 | $818 | $818 | $1,636 | $22,358 | 3% |
The spouse/common-law partner amount and eligible dependant amount cannot both be added to the basic reduction in the same claim. As a result, the maximum reduction is twice the basic amount.
New Brunswick Low-Income Seniors’ Benefit
New Brunswick provides an annual Low-Income Seniors’ Benefit to qualifying residents who receive the federal Guaranteed Income Supplement (GIS), Allowance, or Allowance for the Survivor. For 2026, the benefit is $629.
If both spouses receive the GIS and live in the same household, only one benefit is paid. If the spouses live separately, such as when one spouse resides in a nursing home, each may qualify for the benefit.
Other Credits in New Brunswick
There are several other credits available to residents of New Brunswick that can reduce the income tax you owe, such as:
- Age amount
- Disability Amount
- Caregiver Amount
- Medical Expense Credit
- NB Political Contribution Tax Credit
- NB Small Business Investor Tax Credit
The list of other credits available in New Brunswick can be found on the New Brunswick government website’s Personal Income Tax page.